by Gilbert B Norman
Today's Wall Street Journal carries an article that fortunately can be described as "upbeat":
Brief passage:
Finally, although there is a file photo of a BNSF train passing through Abo Canyon(?) appearing at both print and web editions, the reporter did not include any comments from a BNSF spokesman. It seems strange that even if BNSF is now privately held, it still represents some 20% of the rail infrastructure out there, and still must make public disclosure of its operating and financial results. I noted such at the Reader's Comments attached to the article.
Brief passage:
- During the recession in the early 2000s, U.S. freight railroads slashed spending and services. When business revived, they were roundly criticized for bottlenecks and delays.
This time around, the railroads have continued to spend heavily, plowing more than $20 billion into capital improvements to widen tracks and tunnels, upgrade cars and engines and enhance their technology.
"Back in '03 and '04, we stumbled a bit. We really cut back too much, and when volume came back we were caught short," says James R. Young, the chairman, president and chief executive of Union Pacific Corp., the second largest U.S. railroad by miles of track. "That is not going to happen again."
All the railroads' investment has left them in a position to improve service for their customers, and now that's paying off. For the first 23 weeks of 2010, freight volume grew 7.2% after plummeting 16% in 2009, the biggest decline on record, according to the Association of American Railroads.
So far in the second quarter, the company says it has seen an 18% increase from a year ago in goods shipped.
- FedEx Corp., which moves roughly 45% of its packages by air and 55% by ground, says it expects to use railroads more for ground shipping because of the railroads' improved reliability. Currently, FedEx uses rail for only about 1% of ground shipments.
And United Parcel Service Inc. says it will continue to use rail as much as possible. "Any ground-service package that's going to move 750 miles or more we attempt to put on the rails" as long as the rails can meet service times, says UPS spokesman Norman Black.
Finally, although there is a file photo of a BNSF train passing through Abo Canyon(?) appearing at both print and web editions, the reporter did not include any comments from a BNSF spokesman. It seems strange that even if BNSF is now privately held, it still represents some 20% of the rail infrastructure out there, and still must make public disclosure of its operating and financial results. I noted such at the Reader's Comments attached to the article.
